All Forum Posts by: Eric Mcginn

 Absolutely, send me a message anytime with any questions. I’m not on here super often, so I’ll send you my email.

In away my 9 to 5 funded the LTR acquisitions, but only kind of indirectly. My first one was actually through a hard money lender and I didn’t end up needing any down payment.

I was just responsible for asbestos abatement and demolition of the condemned property, then I was able to refinance with a local credit union and was well within the required LTV. Up until very recently I've done all commercial or residential loans with my local credit union. I did go on to spend about $20,000 on buying and installing a used mobile home to act as a third unit, but I could have financed it through my bank.

After that, I kept all the accounts separate and the equity in the first property pay the down payment for the following two properties. All my rent is collected via apartments.com automatically. Everything goes in and out of that account, with Business credit cards paying whatever bills allow it, and those automatically being paid off from the rental checking account.

I’ve been very lucky with my timing, and have only gone with deals that clearly cash flow when you do the math. My personal method has been low quantity high margin properties, this has allowed me to be a bit more hands off and manage things remotely from the other side of the country while I work my 9 to 5. I also feel like getting too many properties with lower margins is more risky, don’t want to stack your cards too high sort of thing, but if you do it well, you’re set. Like really comfortably set.

commercial loans will give you more flexibility, so be sure to incorporate the extra percent premium they charge into your projections, about 1% more. And usually 20-25 year instead of 30. 

Stick 4 units and under for easier lending and regulations. 

Single families are great, excellent investments potentially. But there is something to be said about getting extra units per mortgage / tax / deal. Less paperwork with more units per building in a sense. 

It's hard to say since I've been buying and renovating with the funds. The STR is a wash, it really doesn't make more than a few thousand a year tops, but we get to use it whenever we want and it more than covers all the expenses while building equity.

Equity is really the key, I feel like I’ve “made it” and don’t have to stress too much about the future. Also, both mine and my wife’s parents have great properties that we could live at temporarily at least which would mean very low cost of living. Also, my wife makes excellent money as a physical therapist and she wants to continue with her career even if part time. 

So those are key factors. 

If I had to guess, I’d say the 8 LTRs (all going for well under market rates, some even half the going rate 😬) make about $30k a year minus taxes. So if I get one more good one, and continue to raise rents 4% a year I’ll have the freedom to do whatever I want to some extent. 

But most importantly I will be living a low cost life knowing that I have over half a million in equity sitting there and growing every year. 

I’m extremely frugal, repair and maintain my own vehicles etc etc. but still we enjoy life, always trying to make time to use the motorhome, just sold the sailboat, Hawaii next month! 

It’s a balance and I’m blessed to have the resources and luck in timing that I’ve had over the years. 

Also, California has EXCELLENT paid family leave for BOTH parents! That bonding time was essential and it would’ve been really tough to not have that. Taxes and prices and traffic suck here but 6 week paid binding leave provided by the state made up for all that real quick. 

I found a fantastic CPA who helped me straighten everything out. 
man’s thank god I did because I had really made a mess of things. 

 Airbnb market is bleak. 
not much adds up at todays rates and prices. 
and rental market has dried up, minimal demand, nothing compared to last year which was off the charts. 
we are doing ok because we got a killer in 2016 so our mortgage and rate is low, so we can keep rates affordable and rent it every weekend. We are covering all expenses and get to use it a weekend every month ourselves. But yea it's a tough market and there aren't many deals that will add up at the moment for STR.

 We pay $2200

 Climate? How much HVAV usage? 
You should be ok

I am 37 and plan to “retire” in the next few years. 
but having a baby and considering a second highlights the importance of health insurance so that is a concern in terms of totally leaving an hourly job, very expensive without help. 
I like my job now, I don’t dread it at least. But yea I’ll be leaving the city to go relax with my kids some day soon and do work here and there as I see fit, maybe open a food truck or a cafe, spend time with the parents and help them out with projects. 
and continue my real estate thing. 

it started with a condemned duplex and has turned into 8 LTRs and a STR.

One more killer deal and I’ll be pretty set. Even now I could raise the rent on my tenants enough to cover my living expenses, but I like my tenants, they leave me a alone and pay on time and I make good money every month. 

Anyways, I’m with you and getting pretty darn close to there, but kids aren’t cheap and neither is health insurance so there’s that too. 

 I think they’re saying from an average strand point, you can consistently *add the most value *    by building non commercial residential multi units. And I’d agree but add that there are all sorts of odd deals out there and be open to whatever had the best numbers